GBP/JPY Daily Forecast

Daily Pivots: (S1) 152.62; (P) 153.76; (R1) 155.55; .

GBP/JPY surges to as high as 155.70 so far today, just inch below mentioned target of 38.2% retracement of 215.87 to 118.81 at 155.88. At this point, further is still in favor as long as 153.38 minor resistance holds. But upside potential might be limited as current rise is expected to conclude at the 155.88 fibo resistance level. On the downside, below 153.38 will indicate that an intraday top is at least formed and deeper fall should be seen to 143.00/150.86 support zone first.

In the bigger picture, there is no change in the view that rise from 118.81 is correction to medium term fall from 215.87 only. While such rise might extend further, it's expected to conclude at 38.2% retracement of 215.87 to 118.81 at 155.88 and bring reversal. Below 143.00 support will indicate that such rebound has completed and the long term down trend from 251.09 is possibly resuming. In such case, we'd be looking forward to a break of 118.81 low eventually. However, note that sustained break of 155.88 resistance will dampen this bearish view and set the stage for stronger rebound to 55 weeks EMA at 162.93 or further to 50% retracement at 167.34 next.

Based on ActionForex.com Technical Outlook